By Naveen Thukral
SINGAPORE, Might 3 (Reuters) – Chicago corn futures rose for a 3rd consecutive session on Monday to hit their highest since March 2013 as dry climate in Brazil raised considerations about international provides.
Wheat prolonged positive factors into a 3rd session, whereas soybeans rose for a second straight day.
“There are huge points for Brazil corn crop which is struggling resulting from lack of rains,” a Singapore-based feed grains dealer stated. “Wheat is monitoring positive factors in corn as it’s used as an alternative to corn in animal feed.”
Probably the most-active corn contract on the Chicago Board of Commerce (CBOT) Cv1 rose 2.2% to $6.88-1/four a bushel by 0314 GMT, hovering close to the session excessive of $6.98 a bushel – the very best since March 2013.
“Brazil’s climate continues to offer help for the value positive factors. A cloth chunk of Brazil’s second corn crop sits in drying soils,” stated Tobin Gorey, director of agricultural technique, Commonwealth Financial institution of Australia.
Brazil’s 2020/2021 complete corn crop estimate was lowered by nearly 8% to 104.1 million tonnes as dry climate is affecting yields of the nation’s second corn plantings, forecaster Safras & Mercado stated on Friday.
The general manufacturing forecast was affected by a minimize of some 10 million tonnes of Brazil’s second corn forecast, now anticipated to be 70.7 million tonnes, in keeping with Safras.
Soybeans Sv1 rose 0.8% to $15.47 a bushel, after closing 2.1% greater within the earlier session, whereas wheat Wv1 climbed 1.6% to $7.46-1/four a bushel, after closing up 0.8% on Friday.
On the technical entrance, corn Cv1 might check a resistance at $7.21-1/2, a break above which may result in a acquire into the $7.75-1/2 to $8.49 vary, in keeping with Wang Tao, a Reuters analyst for commodities technicals.
The situation of French wheat and barley declined sharply within the week ended April 26, knowledge from farm workplace FranceAgriMer confirmed, suggesting a rising impression from dry, chilly climate this month.
Massive speculators minimize their web lengthy place in CBOT corn futures within the week to April 27, regulatory knowledge launched on Friday confirmed.
The Commodity Futures Buying and selling Fee’s weekly commitments of merchants report additionally confirmed that non-commercial merchants, a class that features hedge funds, trimmed their web quick place in CBOT wheat and raised their web lengthy place in soybeans.
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(Reporting by Naveen Thukral, addition reporting by Colin Packham in Canberra; Modifying by Subhranshu Sahu)
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